The Citizen (Dar es Salaam)
Daniel Msangya
23 June 2011
Dodoma — Parliament will now debate the row between the government and BAE Systems of the UK over the payment of 29.5 million pounds (Sh73.8 billion) compensation arising from the controversial sale of a military radar to Tanzania. National Assembly Speaker Anne Makinda said yesterday that MPs would have an opportunity to debate the dispute after a British court directed that the money be paid “to the people of Tanzania”.
Ms Makinda made the decision after Mr Zitto Kabwe (Kigoma North-Chadema) asked that the House be allowed to discuss the government statement tabled earlier by Foreign Affairs and International Cooperation minister Bernard Membe.Mr Membe, who recently returned from London with a delegation that lobbied for the money to be paid directly to the government, briefed the House on the mission. Deputy Speaker Job Ndugai led the delegation.
The debate may bring up fresh claims on corruption in the deal in which several high-ranking government officials were implicated. The government could come under attack for the manner in which it handled investigations into allegations brought by Britain’s Serious Fraud Office (SFO) against former Cabinet minister and attorney general Andrew Chenge and former Bank of Tanzania governor Idriss Rashidi.
Fugitive Tanzanian businessman Shailesh Vithlani is said to have facilitated alleged kickbacks that were equal to 30 per cent of the sale price. Court orders for his arrest have not been enforced after he fled the country.
BAE has decided to channel the reparations through charities and NGOs working. The SFO established that bribes of up to 30 per cent of the radar price that cost the taxpayer some $40 million were paid to Mr Vithlani, possibly as bribes to grease the palms of top government officials to approve the deal in 1999.
BAE admitted to information keeping irregularities entered a penalty bargain with SFO to avoid corruption indictments, after which a court imposed the reparations.
A special board was last week named by the Corporation to oversee the process to utilize the funds for the interest of Tanzanians at the same time when the government delegation was in London. In his statement to Parliament, Mr Membe said the refusal to refund the money to the government would amount to a “humiliation of the republic”. He did not elaborate. He, however, said they were determined to get the payment, hinting they would consider more serious steps, including rejecting the lot if UK insisted on bypassing them.
“Tanzania may be poor country, but Tanzanians should refuse to accept payment from BAE System through charity organisations,” said Mr Membe, adding that accepting the conditionality would amount to admitting that the government was involved in the corrupt deal.
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